Burgan Bank successfully completes capital increase

Press release

Published December 2nd, 2014 - 12:01 GMT

Al Bawaba

Burgan Bank, Kuwait’s second largest commercial bank by assets, announced today the successful completion of its capital increase through the rights issuance announced earlier. Burgan Bank Shareholders have subscribed in the capital increase during the designated period started from November 16, 2014 and ended on November 30, 2014 in number of shares in excess of the shares offered for subscription. The capital increase has been conclusively closed due to the full coverage of all offered shares. Total Proceeds from the rights issuance reached KD102.6 Million.

The number of shares of Burgan Bank has increased by 216 million shares and was priced at 475 Fils per share( 100 Fils nominal value + a premium of 375 Fils ) , reflecting a 12.44% capital increase in Burgan Bank’s issued & paid- up capital from KD173,577,062.700 to KD 195,177,062.700.

The subscription was initially opened for practicing priority right to subscribe in shares, which was constrained to shareholders recorded in the bank’s shareholders register. The excess in shares to be allocated for general subscription for shareholders and others.

Mr. Majed Essa Al Ajeel, the chairman of Burgan Bank commented: “We are very pleased with the results of the rights issue and grateful for both the support and the trust that our shareholders and investors have put in us. The shares were exercised by 125% from our existing shareholders which reflects their continuous trust in the bank’s performance and its future prospects.”

“Burgan Bank has successfully issued USD500 million in AT1 bonds in the third quarter and now the rights issue of KD102.6 million comes to complement the integrated capital optimization plan we opted for to strengthen our capital to comply with Basel 3 requirements and to further support our local and regional growth plans.” Added. Mr. Al-Ajeel.

Burgan Bank Group has one of the largest regional branch networks with more than 233 branches across Kuwait, Turkey, Jordan, Algeria, Iraq, Tunis, Lebanon and Palestine. The wide footprint was achieved after the bank’s decision to diversify into faster growth markets.

Background Information

Burgan Bank

Established in 1977, Burgan Bank is the youngest conventional Bank and second largest by assets in Kuwait, with a significant focus on the corporate and financial institutions sectors, as well as having a growing retail, and private bank customer base. Burgan Bank has majority owned subsidiaries in the MENAT region supported by one of the largest regional branch networks. which include Gulf Bank Algeria - AGB (Algeria), Bank of Baghdad - BOB (Iraq & Lebanon),Tunis International Bank – TIB (Tunisia), and fully owned Burgan Bank – Turkey, (collectively known as the “Burgan Bank Group”). Furthermore, Burgan Bank has a present in the UAE through its corporate office (“Burgan Financial Services Limited) which had helped the bank to participate in multiple financing opportunities in the UAE.